Neil Gonzales, ACCT 420-V3WW, Assignment 1-3 Final

Neil Gonzales, ACCT 420-V3WW, Assignment 1-3 Final -...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Assignment 1-3 Initial Post Team #2 – Leslie, Marian, Gayle, Joyce, Neil Assignment 1-3 Chapter 18 Discussion Questions 5 points Due: May 1 Purpose To prepare you to: 1. Describe the operating rules, organization, and capital structure of corporations. 2. Analyze the consequences of assuming liability for a corporation. 3. Determine what basis issues arise for shareholders and corporations. 4. Describe the impact of shareholder debt and losses. L 3 Traits Overview Your professor will assign you to a group of 2-3 students to complete this assignment on the class Bulletin Board. Your professor may also elect to facilitate a discussion on the exercises in the class Chat Room. Action Items 1. Read your professor’s Chapter 18 Discussion Questions post at the class Bulletin Board topic area "Chapter 18 Discussion Questions" . Chapter 18: Discussion Question 6. What is the control requirement of § 351? Describe the effect of the following satisfying the requirement: a. A shareholder renders only services to the corporation for stock.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. Because services rendered are not considered property, this situation would not qualify for § 351. Therefore, this shareholder’s control would be lost to other shareholders and this situation would then become taxable. b. A shareholder both renders services and transfers property to the corporation for stock.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Neil Gonzales, ACCT 420-V3WW, Assignment 1-3 Final -...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online